Hemp THC Companies Are Suing Ohio Officials To Block New Product Restrictions From Being Enforced

“The moment federally legal hemp crosses Ohio’s borders, it becomes ‘marijuana’ for purposes of Ohio law,” the lawsuit says.

The lawsuit also argues that the state law unlawfully bars companies in the state from using out-of-state hemp, violating the Interstate Commerce Clause, and exposing them to possible felony criminal charges for transporting or processing “marijuana.”

And because the law that makes state-licensed marijuana retailers the only legal outlet for these products requires that all cultivation, processing and retail sales occur in-state, it also bars out-of-state operators from any legal entree to the market.

The lawsuit notes that marijuana licenses are capped and not currently being issued, leaving out-of-state businesses with “no pathway” to participate.

“If every state acted as Ohio has, there would be 50 siloed markets for hemp-derived products rather than a single national market,” the lawsuit says.

Plaintiffs named the state’s 88 county prosecutors, along with nine city prosecutors, as defendants. State Attorney General Andy Wilson (R) is expected to intervene in the case to represent the defendants.

Plaintiffs are seeking both a temporary and a permanent injunction to block enforcement of the law, with a hearing set for Thursday.

While there have been other challenges to the law, only one has resulted in a positive outcome, and for only one company. Seattle-based hemp beverage producer Cycling Frog won a temporary injunction in Sandusky County last month, allowing it to continue to sell its products at a handful of retail outlets in the state.